Liberty Holdings grows interim earnings by more than 100 percent
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LIBERTY Holdings said yesterday that normalised headline earnings (NHEPS) were expected to recover by over 100 percent to between 96.6 and 118 cents per share for the six months to June 30, from a loss per share of 802.5 cents the previous year.
Headline earnings per ordinary share (Heps) of between 75.9 and 92.7 cents were anticipated, versus a Heps: loss per share of 855.2 cents at June 2020, the group said in a trading statement yesterday.
The global economic recovery in the first half had positively impacted global and South African investment markets, which contributed positively to the return on Liberty’s Shareholder Investment Portfolio during the six-month period.
A pandemic reserve was set up in the 2020 financial year to provide for the expected impact of Covid-19 on Liberty’s business. The impact in 2021 on mortality of the second wave exceeded expectations in the South African Retail and Liberty Corporate businesses.
This, together with the impact of the current third wave and the associated prevalence of the Delta variant, had necessitated a top-up of the pandemic reserve.
Liberty however continued to remain well capitalised after taking account of the ongoing operational impacts of the pandemic and the increase in the pandemic reserve, the group said.
BUSINESS REPORT ONLINE